The vast road network, high-speed rail networks, and global accessibility to air travel have all contributed to an increase in the number of people traveling for both leisure and business. Young people, especially those in Generation Z, are becoming more and more interested in self-driving to scenic locations and outlying villages. The increasing use of personal electronics has made renting a car easier with car rental business software.

In 2023, the global market for car rentals is projected to grow to a value of USD 104.00 billion. By 2027, the car rental software market is expected to have grown at a CAGR of 3.49% to reach USD 119.30 billion. A car rental software for small business has the potential to drastically change the way your business runs in the future, regardless of whether you have fully embraced the digital revolution by enabling your customers to book rental cars online at any time or you are still operating under a traditional vehicle rental business model.

Trends in Car Rental Software for Small Businesses

The sector is undergoing rapid development because of changes in fundamental operations and the introduction of autonomous vehicles, smart vehicle penetration, more personal consumption, and upgraded car booking tech. 

1. Online Booking

There are several ways that clients can reserve cars from car rental companies. However, clients are increasingly choosing to reserve automobiles online. By 2027, internet reservations are predicted to account for over 72% of the rental car industry's entire income, according to Statista.

Customers pick the online booking method over other options primarily because it is convenient to hire a vehicle from a remote location, directly from their mobile device, and it meets all of their expectations. While the majority of users stated that they always reserve their cars online, 14.6% of respondents said they would rather make a phone reservation. 

For 8.5% and 7.8% of respondents to the poll, respectively, social media and chat messengers are additional methods for making automobile reservations. Only 6.4% of survey participants reserve a rental car after visiting the auto rental company in person, despite their preference for online bookings.

2. Greater Emphasis on Hygiene

The pandemic has altered the standards for cleanliness. Although there are certain unsanitary situations in public transportation, it is now essential for service providers to maintain the highest standards of hygiene throughout their whole fleet. 

While hygiene has always been important, the post-pandemic "new normal" has made it a top priority for car rental companies to maintain their customers' trust. 

To demonstrate that the agencies are following all health regulations for the clients, deep cleaning and routine sanitization have become the new standard. To protect drivers and passengers, automobile rental firms are required to go by certain standards and hygiene guidelines set forth by the World Travel and Tourism Council, OSHA, and other local legislation. 

3. Improved Technological Features

Any industry can flourish tremendously with the help of technology. The auto rental sector has experienced the same thing. In order to increase brand recognition among their clientele, car rental companies nowadays concentrate on implementing technological innovations. One such development that proves to be the finest investment is AI-based pre-build car rental software that accepts several payments.

Services like tracking and WiFi while riding improve connectivity for patrons. The introduction of pre-build car rental software can speed up the booking or cancellation process since it requires less time to input papers or provides better customer service. Although 78.3% of participants believe that the service provider should offer several payment methods, 67.8% of customers anticipate that the provider should accept different currencies for payments.

4. On-the-Way Assistance

Today, the majority of car rental firms offer their clients roadside or on-the-way help. These services typically come with additional costs and are optional. When traveling, assistance is quite helpful in case of emergency.

When and whenever it's needed, automobile rental businesses offer assistance with situations like misplaced keys, locked keys inside the car, dead batteries, low fuel, and mounting extra tires.

The vast road network, high-speed rail networks, and global accessibility to air travel have all contributed to an increase in the number of people traveling for both leisure and business. Young people, especially those in Generation Z, are becoming more and more interested in self-driving to scenic locations and outlying villages. The increasing use of personal electronics has made renting a car easier with car rental business software.

In 2023, the global market for car rentals is projected to grow to a value of USD 104.00 billion. By 2027, the car rental software market is expected to have grown at a CAGR of 3.49% to reach USD 119.30 billion. A car rental software for small business has the potential to drastically change the way your business runs in the future, regardless of whether you have fully embraced the digital revolution by enabling your customers to book rental cars online at any time or you are still operating under a traditional vehicle rental business model.

Trends in Car Rental Software for Small Businesses

The sector is undergoing rapid development because of changes in fundamental operations and the introduction of autonomous vehicles, smart vehicle penetration, more personal consumption, and upgraded car booking tech. 

1. Online Booking

There are several ways that clients can reserve cars from car rental companies. However, clients are increasingly choosing to reserve automobiles online. By 2027, internet reservations are predicted to account for over 72% of the rental car industry's entire income, according to Statista.

Customers pick the online booking method over other options primarily because it is convenient to hire a vehicle from a remote location, directly from their mobile device, and it meets all of their expectations. While the majority of users stated that they always reserve their cars online, 14.6% of respondents said they would rather make a phone reservation. 

For 8.5% and 7.8% of respondents to the poll, respectively, social media and chat messengers are additional methods for making automobile reservations. Only 6.4% of survey participants reserve a rental car after visiting the auto rental company in person, despite their preference for online bookings.

2. Greater Emphasis on Hygiene

The pandemic has altered the standards for cleanliness. Although there are certain unsanitary situations in public transportation, it is now essential for service providers to maintain the highest standards of hygiene throughout their whole fleet. 

While hygiene has always been important, the post-pandemic "new normal" has made it a top priority for car rental companies to maintain their customers' trust. 

To demonstrate that the agencies are following all health regulations for the clients, deep cleaning and routine sanitization have become the new standard. To protect drivers and passengers, automobile rental firms are required to go by certain standards and hygiene guidelines set forth by the World Travel and Tourism Council, OSHA, and other local legislation. 

3. Improved Technological Features

Any industry can flourish tremendously with the help of technology. The auto rental sector has experienced the same thing. In order to increase brand recognition among their clientele, car rental companies nowadays concentrate on implementing technological innovations. One such development that proves to be the finest investment is AI-based pre-build car rental software that accepts several payments.

Services like tracking and WiFi while riding improve connectivity for patrons. The introduction of pre-build car rental software can speed up the booking or cancellation process since it requires less time to input papers or provides better customer service. Although 78.3% of participants believe that the service provider should offer several payment methods, 67.8% of customers anticipate that the provider should accept different currencies for payments.

4. On-the-Way Assistance

Today, the majority of car rental firms offer their clients roadside or on-the-way help. These services typically come with additional costs and are optional. When traveling, assistance is quite helpful in case of emergency.

When and whenever it's needed, automobile rental businesses offer assistance with situations like misplaced keys, locked keys inside the car, dead batteries, low fuel, and mounting extra tires.

5. Pay Attention to Luxury Vehicles

One of the main causes propelling the expansion of the vehicle rental sector is the middle class's increasing spending power and foreign travel. Luxury car ownership might be costly, but many people find that renting one can be more economical.

Nowadays younger generation would rather rent an automobile than buy one. This is a key motivator for luxury car rentals. Millennials rent premium automobiles so they don't have to worry about the cost of upkeep since they prefer to drive in comfort and luxury. 

6. Predilection for electric and hybrid cars

One ground-breaking development in the direction of sustainable mobility is the use of electric cars in the rental car market. The industry's growing propensity towards the introduction of electric automobiles is evident from the announcement made by industry titan Hertz regarding the enormous order of about 100,000 Tesla vehicles.

A noteworthy development that may help electric vehicles become more widely used for transportation is the rise in the proportion of EVs in the fleet of rental cars.

7 Distance-Based Damage Evaluation

Car inspections done by hand are labor-intensive and fraught with danger. Additionally, manual evaluation may occasionally be the source of disagreements between the client and the service provider. 

In the car rental market, remote damage assessment is becoming more and more popular. It lets both the customer and the service provider monitor the damage more precisely than they can with human capabilities thanks to technologies like AI and ML in car rental business software. Artificial intelligence-assisted inspection becomes more efficient overall and gets better with repeated use.

8. Subscription Models

Virtually all service industries have incorporated subscription-based models, and the automobile rental sector is no exception. Subscription models, which are gaining popularity, have been adopted by industry giants such as Hertz, Enterprise, and Sixt+. (10)

A consumer who subscribes to a car rental booking software can enjoy flexibility in switching cars without worrying about insurance and maintenance charges. Another advantage that clients can take advantage of by choosing subscription models is roadside help.

Subscription models satisfy all the fundamental characteristics, despite the fact that each company's subscription plan is different.

Ways Car Rental Software Can Help Your Business

You will be able to concentrate your attention and resources on the parts of your organization that are showing the most profitability if you have a complete software solution with features for detailed reporting and analysis. Additionally, it might assist you in increasing profitability in regions that could be operating more effectively.

The most recent developments and technology advancements in car rental software for small businesses have the potential to significantly alter both your car rental company and the automobile rental sector as a whole. Joining the digital revolution will make it much easier for you to stay competitive, whether you choose to stay a rental-only business and simply utilize the automation and reporting capabilities that car rental business software has to offer, or you decide to go all in and start offering rideshare cars for Uber, car subscription contracts, and micro mobility services.

One of the main causes propelling the expansion of the vehicle rental sector is the middle class's increasing spending power and foreign travel. Luxury car ownership might be costly, but many people find that renting one can be more economical.

Nowadays younger generation would rather rent an automobile than buy one. This is a key motivator for luxury car rentals. Millennials rent premium automobiles so they don't have to worry about the cost of upkeep since they prefer to drive in comfort and luxury. 

6. Predilection for electric and hybrid cars

One ground-breaking development in the direction of sustainable mobility is the use of electric cars in the rental car market. The industry's growing propensity towards the introduction of electric automobiles is evident from the announcement made by industry titan Hertz regarding the enormous order of about 100,000 Tesla vehicles.

A noteworthy development that may help electric vehicles become more widely used for transportation is the rise in the proportion of EVs in the fleet of rental cars.

7 Distance-Based Damage Evaluation

Car inspections done by hand are labor-intensive and fraught with danger. Additionally, manual evaluation may occasionally be the source of disagreements between the client and the service provider. 

In the car rental market, remote damage assessment is becoming more and more popular. It lets both the customer and the service provider monitor the damage more precisely than they can with human capabilities thanks to technologies like AI and ML in car rental business software. Artificial intelligence-assisted inspection becomes more efficient overall and gets better with repeated use.

8. Subscription Models

Virtually all service industries have incorporated subscription-based models, and the automobile rental sector is no exception. Subscription models, which are gaining popularity, have been adopted by industry giants such as Hertz, Enterprise, and Sixt+. (10)

A consumer who subscribes to a car rental booking software can enjoy flexibility in switching cars without worrying about insurance and maintenance charges. Another advantage that clients can take advantage of by choosing subscription models is roadside help.

Subscription models satisfy all the fundamental characteristics, despite the fact that each company's subscription plan is different.

Ways Car Rental Software Can Help Your Business

You will be able to concentrate your attention and resources on the parts of your organization that are showing the most profitability if you have a complete software solution with features for detailed reporting and analysis. Additionally, it might assist you in increasing profitability in regions that could be operating more effectively.

The most recent developments and technology advancements in car rental software for small businesses have the potential to significantly alter both your car rental company and the automobile rental sector as a whole. Joining the digital revolution will make it much easier for you to stay competitive, whether you choose to stay a rental-only business and simply utilize the automation and reporting capabilities that car rental business software has to offer, or you decide to go all in and start offering rideshare cars for Uber, car subscription contracts, and micro mobility services.